Honda to increase car prices by April 2
Honda Siel Cars India Ltd will increase prices across all models from April 2 since the sales tax holiday in UP would soon elapse.autos Updated: Mar 28, 2007 17:04 IST
Auto major Honda Siel Cars India Ltd today said it will increase prices across all models from April 2 since the sales tax holiday, it enjoys in Uttar Pradesh, is coming to an end.
"Since inception, we have been exempted from the four per cent Central Sales Tax in Uttar Pradesh related to the amount of investments we make in the state. This tax holiday is coming to an end," HSCI Senior General Manager Jnaneswar Sen told reporters here.
The company, however, has not decided on the quantum of the increase and would take a decision on whether the whole three per cent increase would be passed on to the consumers or not.
Sen said the company needs to take competition into consideration while deciding whether it passes on the entire increase to the customer or not.
If the company decides to pass on the entire sales tax increase to the customers then it would make its sedan 'City', which is being presently sold at Rs 6.75 lakh, costlier by Rs 10,250. While 'Civic', priced at Rs 10.88 lakh, could be dearer by about Rs 32,644 and 'Accord', which is tagged at Rs 14.92 lakh, may be expensive in a range of Rs 35,000-44,760.
Honda, which is planning to set up its second greenfield manufacturing facility in Rajastan, is likely to sign a memorandum of understanding with the state government in the next couple of months.